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Shares of Eternal (formerly Zomato) rose 2.3% to hit the day’s high of Rs 237.90 on the BSE on Friday; Should you buy?
Zomato Shares Rise
Zomato Share Price: Shares of Eternal (formerly Zomato) rose 2.3% to hit the day’s high of Rs 237.90 on the BSE on Friday, following the release of its Q4FY25 earnings. Despite a steep 78% year-on-year (YoY) decline in net profit to Rs 39 crore, the company posted a strong 64% YoY jump in revenue from operations to Rs 5,833 crore for the March quarter.
Eternal, officially rebranded from Zomato in March, has seen its stock price more than double in the past two years, largely driven by growing investor confidence in Blinkit’s performance.
The management emphasised that its current focus is on expanding market share rather than short-term profitability. It also announced the shutdown of its 15-minute food delivery service ‘Quick’ and the home-style meal platform ‘Everyday,’ citing a lack of a viable path to profitability without compromising customer experience.
Eternal’s core food delivery segment remained steady in Q4FY25, reporting a Gross Order Value (GOV) of Rs 8,439 crore, up 6% quarter-on-quarter. The adjusted EBITDA margin for the segment stood at 5.7%.
Quick commerce unit Blinkit showed robust growth, with revenue surging 122% YoY to Rs 1,709 crore. Net Order Value (NOV) jumped 53% YoY and 19% sequentially.
What Brokerages Said:
Motilal Oswal | Target: Rs 260 | Rating: Buy
Motilal sees Blinkit as a generational opportunity disrupting retail and grocery. However, it cut FY26E/27E estimates by 52%/27% due to growing competition and high investment in dark store expansion.
Nomura | Target: Rs 280 | Rating: Buy
Nomura noted Eternal’s strong cash position (Rs 18,800 crore) post its $1bn QIP. It forecasts 17% GOV growth in food delivery and 125% in Blinkit for FY26, though Blinkit’s EBITDA margin may remain slightly negative.
Nuvama | Target: Rs 290 | Rating: Buy
Eternal’s Q4 numbers were in line with expectations. Revenue grew 63.8% YoY to Rs 5,830 crore. Blinkit’s margin improved despite rapid dark store expansion, with profitability expected to improve in the next quarter.
Emkay Global | Target: Rs 290 | Rating: Buy
While food delivery GOV dipped 1.4% QoQ due to softer demand and competition, Blinkit grew 20.8% QoQ. Higher losses from aggressive store openings are expected to persist in the short term, with the target of 2,000 stores by Dec 2025.
ICICI Securities | Target: Rs 310 | Rating: Buy
Eternal beat EBITDA expectations with Rs 70 crore in Q4, helped by better ad revenue and efficient expansion. The firm flagged rising competition outside quick commerce and expects QC margins to recover from Q1FY26.
Disclaimer:Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
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